KE Holdings Inc. (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services in China, saw its stock price surge by 5.11% in pre-market trading on Wednesday. This significant uptick comes as part of a broader rally in Chinese ADRs and ETFs, reflecting growing optimism in the market.

The rally in KE Holdings' stock aligns with a notable trend observed across Chinese stocks listed in the US. Other prominent Chinese companies also experienced substantial gains, with XPeng up 7.8%, PDD Holdings rising 4%, and Alibaba climbing 3.4%. ETFs tracking Chinese stocks, such as YINN, saw increases of up to 5.3%, indicating robust overall performance in the sector.

This positive momentum in Chinese stocks appears to be fueled by encouraging signals regarding US-China trade relations. Recent statements from President Donald Trump suggest a more conciliatory approach to trade talks with China, including plans to be "very nice" in future negotiations and hints at the possibility of reduced tariffs if a deal is reached. Additionally, comments from Treasury Secretary Scott Bessent indicating that the current tariff stand-off is unsustainable have further boosted investor confidence. This softening stance on trade issues has likely contributed to the surge in KE Holdings' stock price, as it suggests a potentially more stable and favorable business environment for Chinese companies operating in or dealing with the US market.